OMV says it is unlikely to resume production in war-torn Libya or Yemen before winter.
VIENNA, May 18 (Reuters) - Austrian energy group OMV said on Monday it was unlikely to resume production in war-torn Libya or Yemen before winter, after headline profit fell by half as low oil prices weighed on its upstream business.
It also said overcapacity in Europe would drive an improved refining margin down again. OMV's bigger rivals including Chevron, Exxon Mobil and Royal Dutch Shell, have leant on their refining divisions to buffer profit slumps when oil is cheap.
OMV had previously reported first-quarter output fell to 303,000 boe/d from 318,000 in the previous quarter . In peaceful times its production was supported by a combined 40,000 boe/d from Libya and Yemen.
But OMV did not expect production in Libya to resume this year and force majeure declared last month in Yemen would stay in place for six months, Jaap Huijskes, head of exploration and production, told analysts on a conference call.
Outgoing Chief Executive Gerhard Roiss earlier said the firm had no plans to quit either country.
OMV's shares fell 7.2 percent to 28.14 euros at 1042 GMT, while the European sector was off 0.6 percent.
View Full Article
Copyright 2016 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you